If the inflation that results from targeting unemployment becomes unacceptably high, low inflation can be restored. Lower inflation can be obtained by ________ the growth rate of aggregate demand, by ________ money growth and by ________ interest rates.
A) raising; slowing; raising
B) lowering; accelerating; lowering
C) lowering; accelerating; raising
D) lowering; slowing; raising
E) lowering; slowing; lowering

Question

Quizplus · Accepted Answer

Lowering the growth rate of aggregate demand, slowing money growth, and raising interest rates are all measures that can help reduce inflation. These actions typically cool down economic activity, thereby reducing inflationary pressures.

If the Inflation That Results from Targeting Unemployment Becomes Unacceptably